One store in Winnipeg sold out in a few hours – reporting over $50,000 of sales.

Several stores in Newfoundland and Labrador had to close up after selling out of every product.

And websites in provinces including British Columbia, Ontario and Quebec have experienced an overwhelming number of transactions. And they’re quickly running out of many products.

Why is this good new?

It’s simple supply and demand.

When there is more demand than supply, prices remain high.

This is what’s happening in Canada right now. There is far more demand for cannabis than supply available. And that’ll keep prices – and profit margins – high.

When there is more supply than demand, prices fall.

This is happening in Washington state right now. Cannabis prices plunged because production is three times greater than the market demand.

Now, Canada may eventually look like Washington state. And prices for cannabis will eventually fall.

But it won’t happen overnight.

That’s because there’s a huge gap between current production and demand. Researchers at the University of Waterloo estimate that Canadian companies can produce 210, tonnes of cannabis. However, the country’s demand is estimated to be 610 tonnes.

That means Canada’s production must increase by nearly 200% to meet current demand.

There will continue to be shortages for the foreseeable future. And people who can’t buy cannabis legally may continue to rely upon the black market.

Some skeptics are concerned about these shortages . . . and what they mean for Canadian growers like Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB).

However, these shortages don’t reflect on the performance of the cannabis growers.

Instead, this shows the failed execution by the government. The provincial governments clearly weren’t prepared to roll out cannabis on Oct. 17. Many fought Prime Minister Justin Trudeau every step of the way toward legalization.